Becoming a Value-creating Company that

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Transcript of Becoming a Value-creating Company that

Page 1: Becoming a Value-creating Company that
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C o n t e n t sReporting periodFY2011 (April 1, 2011 - March 31, 2012)

Scope of calculationsSites in Japan

· Head Office (Togoshi) Gate City Office (Osaki)

· Osaka Branch

· Nagoya Branch

· Kanagawa Sales Office

· Ibaraki Sales Office

· Hokuriku Sales Office

· Fukuoka Sales Office

· Toyama Works and Toyama Technology Center

· Hitachi Works

· Ibaraki Works

· Yamato Works

ASIA· SMK High-Tech Taiwan Trading Co., Ltd.

· SMK Electronics (H.K.) Ltd.

· SMK Trading (H.K.) Ltd.

· SMK Electronics (Dongguan) Co., Ltd.

· SMK Electronics (Shenzhen) Co., Ltd.

· SMK Electronics Trading (Shanghai) Co., Ltd.

· SMK Electronics Singapore Pte. Ltd.

· SMK Electronics (Malaysia) Sdn. Bhd.

· SMK Electronics (Phils.) Corporation

EUROPE· SMK Europe N.V.

· SMK (U.K.) Ltd.

· SMK Hungary Kft.

NORTH AMERICA· SMK Electronics Corporation U.S.A.

· SMK Manufacturing, Inc.

· SMK Electronica S.A. de C.V.

· Toyama Showa Co., Ltd.

· Showa Denshi Co., Ltd.

· Ibaraki SMK Co., Ltd.

Subsidiaries in Japan

Overseas Sites

CO2 emissions

Access to corporate information

Conversion coefficients are subject to the standards of the Federation of Electric Power Companies

of Japan for domestic sites, and the GHG Protocol for overseas sites.

Our website discloses data profiling our company, IR information, product descriptions, and past

environmental reports.

http://www.smk.co.jp/Contact : Environmental Protection Department, SMK Corporation TEL : +81-3-3785-5058 FAX : +81-3-3785-0517

About This Report

Message from the Management

Message from Vice President of Environment Div.

Environmental Management

Environmental Preservation Activities

Material Balance

Energy and Resource Saving Results

Environmental Accounting

Energy Conservation during Summer

Energy and Resource Saving Activities

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An unprecedented disaster and a global credit shortage have had a profound impact on the business environment.

However, to me, these circumstances also sound a clarion call urging us to create new value. We are presented with an opportunity to reassess our direction as people, as amanufac-turer, and as a corporate citizen, towards the realization of a safer and happier future.

SMK’s business is predicated on environmental sustainability. Uppermost in our minds is a focus on our responsibility to go on offering products that provide solutions to a variety of issues, first and foremost issues of resources and energy. And in addition to this, we also recognize that it is precisely within this focus on contributing to the preservation of the global environment that new business opportunities for SMK lie.

We will direct further energy towards the creation of products that will reduce our environmental burden and promote recycling, for example in the areas of natural (renewable) energy, energy conservation, such as HEMS (home energy management system), and low-carbon products, as exemplified by hybrid cars.

We will also continue, and intensify, our efforts to eliminate loss from all of our processes (“Muda, Mura, Muri” initiatives).

For instance, our Corporate Environmental Preservation Committee, of which the top management of all our domestic and overseas production facilities are members, functions in each of our workplaces to monitor our level of achievement of targets for the reduction of CO2 and waste products, and plays a significant role in our efforts to control any waste of energy or resources in our business activities.

SMK has received a high ranking in a survey of environ-mental management conducted by the Nikkei Inc., and I take no little pride in the fact that this is an outcome of our consis-tent efforts and of changes in our attitude towards our tasks.

However, we are still on our way. I remain aware that the crucial period in the challenge we have presented ourselves to create new value lies ahead of us.

With these thoughts in mind, I present the SMK Environment Report 2012 to all our stakeholders.

Have no doubt that you can expect even greater things from SMK in the future.

June 2012

Creation of Environmentally Friendly Products 9

Becoming a Value-creating Company thatreconciles Sustainability with Growth.

President andChief Operating Offi cer

Yasumitsu Ikeda

Message from the Management

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22008 2009 2010 2011 (FY)

3,000

2,000

1,000

0

-1,000

-2,000

2008 2009 2010 2011 (FY)2008 2009 2010 2011 (FY)

(Units: million yen) (Units: million yen) (Units: million yen)

Energy conservation, the reduction of CO2 emissions, the reduction of waste and harmful substances, further advances in environmentally friendly and miniaturized technology… At SMK, we push ourselves to respond to these environmental goals both more broadly and at a higher level.

“More broadly” encompasses efforts in a broad range of areas, including manufacture, use, transportation, and marketing.

“At a higher level” refers to the ambitious targets that we set ourselves.

For instance, we set ourselves the target of reducing our peak power usage in summer 2011 by 25% against figures for the previous year. We actually achieved a reduction of 28%. This will not be a one-off achievement; the expertise in energy conserva-tion that we attained in doing so will be extended to the SMK global network.

I believe that the eco market will develop rapidly, propelled by a new awareness of energy conservation following the earthquake and tsunami disaster. Against this background, as a company that has attained a level of technological capacity enabling it to respond on all fronts, including conservation of energy and resources, the realization of increased efficiency, and environmentally friendly design, SMK will fulfill its respon-sibility as a corporate citizen through the provision of eco-conscious products.

It is well known that the miniaturization of electronic parts advances as an inevitable consequence of the needs of customers and the market. It is standard procedure to reduce size in order to ultimately reduce resource and energy use. But this is not enough for SMK. It goes without saying that we seek to reduce waste and energy use in our manufacturing processes, but more than this, we also strive to create products

with consideration of their entire life cycle. The standardization of the life cycle assessments (evaluations of environmental impact) that make this possible was established as a target in our Mid-term Plan, and we are working to render our environ-mental burden visible in this way.

It was agreed at COP17, held in 2011, that the term of the Kyoto Protocol should be extended, and that Japan would not face new obligations for reductions from 2013. There has been no change, however, in the fact that we will go on working towards voluntary emissions reductions under the leadership of the government.

Naturally, SMK views contributing to the fight against global warming as an important agenda, and we will continue to make global efforts in this area. In doing so, we will always bear in mind our responsibility to make the scope of our activities broader and the level of our targets higher.

June 2012

Corporate Profile (as of March 31, 201 2)

Major Products

Consolidated Net Sales Consolidated Operating Income Consolidated Net Income

NameEstablishedRegisteredPrimaryBusinesses

CapitalNumber of Employees

Head office

Switches / Remote control units / Keyboards /

Control panel units / Electret condenser microphones /

Earphone-microphone assemblies / Camera modules /

AC adaptors / Antennas / Crimp connectors / FPC and FFC connectors / Board-to-board connectors /

RF coaxial connectors / Interface connectors /

Card connectors / Power connectors /

Jacks and pin jacks /

DC power supply plugs and jacks / Fuse holders /

Connectors for photovoltaic modules / LED connectors

Resistance sensitive touch panels /

Optical touch panels / Capacitive touch panels /

Bluetooth modules

SMK Corporation

April 1925

January 15, 1929

Manufacturing and sales of electronic components for use in

electrical equipment, communications equipment, electronic

equipment, industrial machinery, IT equipment and other

applications.

7,996 million yen

11,311 (in the Group)

5-5, Togoshi 6-chome, Shinagawa-ku, Tokyo 142-8511, Japan

TEL: +81-3-3785-1111 FAX: +81-3-3785-1878

URL: http://www.smk.co.jp/

Reaching Higher to Open the Door toA New Era of Eco-friendly Technology

Message from VicePresident ofEnvironment Div.

Vice President ofEnvironment Div.

Yoshiyuki Kaku

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

72,742

64,37161,914

55,340

△1,620 △799

1,862

1,037

238

2,4793,000

2,000

1,000

-1,000

-2,000

0

2,754

△1,166

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In-House training of internal auditors (Head Office)

Environmental e-learning at SMK Mexico

Organization to Promote Environmental Preservation

SMK Environmental Charter

3

Environmental Management

1. Basic Philosophy

Environmental Management Systems

Environmental Education

2. Action Guidelines

Organizational Structure for Environmental Preservation

President

Executive Officers’ Meeting

CSR Committee

Corporate EnvironmentalPreservation Committee* Chairperson: Vice President

of Environment Div.* Secretariat: Environmental

Protection Department

Members of the EnvironmentalPreservation Committee

at each business site

The SMK Group pursues environmentalpreservation as well as economic development, by integrating its current technological strengths and creating advanced technology. As a goodcorporate citizen, every one of us will contribute to the promotion of sustainable global development.

In SMK, the Group policies, targets, and initiatives related

to environmental preservation are deliberated upon and

determined by the Corporate Environmental Preservation

Committee, which is chaired by the Vice President of the

Environment Division. Major items are subject to deliberation

and determination at the Executive Officer’s Meeting. Upon

determination, they are deployed at all Japan and overseas

works. At each business site, the local Environmental

Preservation Committee decides local policies, targets, and

initiatives in accordance with the Group policies, targets, and

initiatives taking locally specific issues into consideration and

puts them into practice.

SMK implements environmental education by levels of

employees throughout the Group, and as a part of the

professional education curriculums. In addition, each business

site makes its own annual education plans.

We also encourage our employees to take the Certification

Test for Environmental Specialists (also known as the Eco

Test) administered by the Tokyo Chamber of Commerce and

Industry. Every year since the first test in 2006, we have

gathered candidates, purchased textbooks, and provided

assistance with the burden of exam fees. As of 2011, a total of

57 of our employees had passed the test, and they are helping

to guide and advance environmental preservation activities at

each workplace.

SMK’s environmental management systems are in

accordance with ISO 14001, the international standard for

EMS.

We have obtained ISO 14001 certification for all of our

Japan sites and overseas works. Since fiscal 2007, in addition

to individual activities at each site, we have been setting

targets and themes to be shared by all members of the SMK

Group, reinforcing linkage among our sites, and working to

strengthen group-wide systemic arrangements.

SMK’s environmental preservation activities are not limited

to our Group. The Green Procurement Guidelines that we

published in 2004 also make demands on our suppliers.

Specifically, we request our suppliers to pledge not to use any

environmentally hazardous substances prohibited by SMK,

and to put in place ISO 14001-based systems. We visit

suppliers who have not obtained ISO 14001 certification to

check on the status of their environmental preservation

activities, and to suggest any necessary improvements.

(1 ) Develop environmentally friendly products(2) Reduce waste by using everything to its fullest extent(3) Preserve natural resources and saving of energy(4) Encourage 3R (reduce, reuse and recycle)(5) Realize waste-free procurement and manufacturing

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C

C

A

C

B

C

B

A

Preventing global warming

Effective use of resources

Preserving biodiversity

Nature of initiative

CO2 emissions per unit of production value*¹:11% reduction relative to FY2010 Target: 0.45 t-CO2/million yen

Total CO2 emissions: 9% reduction relative to FY2010 Target: 29,375 t-CO2

Review and introduction of energy management systems

Review of SMK standards for LCA (including carbon footprint)

Review of activities related to purchasing with preservation of biological diversity in mind

Industrial waste discharge per unit of production value*²: 20% reduction relative to FY2010 Target: 0.0235 t/million yen

Total industrial waste discharge amount: 18% reduction relative to FY2010 Target: 1,550 t

Landfill waste amount: 70% increase relative to FY2010 Target: 213 t

AchievementTarget

FY2011

12% increase 0.56 t-CO2/million yen

4% decrease 30,973 t-CO2

Study of ISO 50001 system

Obtaining and analyzing information on industry trends

Requesting cooperation of suppliersExamining revisions to the Green Procurement Guidelines

1% increase 0.0296 t-CO2/million yen

13% decrease 1,636 t

26% decrease 92 t

A

C

A

Effective responses forthe management of environment-related substances

Advancement of environ-mentally friendly design

Bring online system to manage information on constituent materials, a system to respond to the EU REACH Regulation

Enhancement of product assessments

Completion of revision of internal management system and implementation of responses

Review and introduction of software towards the realization of a more sophisticated management system

Partial revision and enhancement of details of assessments

Self-assessment

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Environmental Preservation Activities

■ Preventing Global WarmingIn the area of CO2 emissions, we have worked towards

improvements such as the replacement of air conditioning systems

with energy-saving models and the reexamination of equipment

operating conditions. However, there was an increase in our CO2

emissions per unit of production value as a result of factors

including the full operation of clean rooms for the production of

touch panels, the floor space for which increased last fiscal year,

and increased emissions from the use of generators due to a

higher than expected volume of power outages at works in China,

and our total CO2 emissions somewhat reduced from last fiscal

year. Future initiatives include the introduction of energy manage-

ment systems and life cycle assessments (LCA).

■ Preserving Biodiversity We have requested the cooperation of our suppliers in

roundtable discussions to ensure that biological diversity is

preserved throughout the entirety of our supply chain.We are

also examining revisions to our Green Procurement Guidelines,

and intend to release the revised edition in fiscal 2012.

■ Effective Use of Resources We achieved a significant reduction in our total amount of

industrial waste discharge and the amount of landfill waste by

improvements stemming from waste reduction activities

conducted in relation to our production processes. Figures for

industrial waste discharge per unit of production were the

same as fiscal 2010.

■ Effective Responses for the Management of Environment-related Substances

We have completed the reexamination of our company

management system in relation to the revision of the EU

RoHS Directive (exempted items), and have made the

necessary responses.

With regard to the EU REACH regulations, we are aiming

towards the introduction of a more sophisticated

management system, and have commenced the

introduction of appropriate software.

■ Advancement of Environmentally Friendly Design In fiscal 2011, we revised the detail procedures to evaluate

the presence of environmentally hazardous substances. We

will proceed to enhance the level of our evaluations in the

areas of energy and resource conservation in future.

OUTPUT

Material Balance

At SMK, we are attempting to analyze and understand the material balance (environmental footprint) for each of our processes, from product design and development to manufacture and sales, and to realize highly efficient business activities.

●Wastewater ●Products

Electrical power (10 thousands of kWh)

Fuel (crude-oil equivalent, kℓ)

Water (t)

CO² emissions accompanying energy use (t-CO²)

Amount of industrial waste discharge (t) Total amount =❶+❷

❶Amount recycled 1,538❷Amount disposed

INPUT

●Paper for use with office equipment ●Procured materials• Raw materials • Purchased parts• Chemicals and subsidiary materials, papers (packaging cardboard)

Japan

Overseas

All of SMK’s Japan and overseas sites have formulated targets for environmental preservation activities, and are pushing ahead with realization of improvements. The table below presents the actual results of SMK’s major activities in fiscal 2011, as well as targets for this fiscal year.

5,025

781 4,244

680

190 490

476,325

70,776 405,549

30,973

3,224 27,750

331 1,305

1,212325

6 92

1,636

98

Self-assessment

A: attained B: insufficiently-attained C: not attained*1: CO² emissions per unit of production value = CO² emissions divided by production value*2: Industrial waste discharge per unit of production value = industrial waste discharge divided by production value

SMKGroup

Page 6: Becoming a Value-creating Company that

Energy and Resource Saving Results

SMK recorded an increase in CO2 emissions per production

when viewed in terms of unit of nominal production value

(112% against the previous fiscal year), while the amount of

CO2 emissions recorded a slight decrease (96% against the

previous fiscal year) for fiscal 2011, as indicated under the

heading Environmental Preservation Activities. (See page 4)

We have been working to progressively increase our level of

in-house processing of parts (molding, stamping, etc.) rather than

outsourcing since our base year (FY2005) towards the achieve-

ment of greater efficiency through integrated manufacturing.

If we analyze trends in our total CO2 emissions (trends in

substantive CO2 emissions) except the amount of increase due

to this in-house processing by unit of actual production value

(calculated with the effect of commodity prices and exchange

rate change minimized), levels are almost equivalent to those for

our base year. When we take into consideration the fact that we

have expanded our production of touch panels, which requires

the use of energy-intensive clean rooms, we can actually point

to an improvement in our emissions trends. (See graphs below)

Trends in CO2 emissions and CO2 emissions per unit of nominal production value

5

SMK positions responses to global warming as an important management agenda, and is implementing and constantly enhancing initiatives to conserve energy.We are also working to reduce industrial waste discharge amount and to realize zero emissions (zero landfill waste), in an attempt to use our resources more efficiently.

CO² emissions

CO² emissions per unit of production value(nominal production value)

104%

88%

Japan

112%

96%

Overall SMK Group

Year on Year

Ref: Trends in CO2 emissions and CO2 emissions per unit of actual production value

10,000

5,000

0

15,000

20,000

25,000

30,000

35,000

40,000

(FY)

*Nominal production value is used in the calculation of emissions per unit of production value

2012

(Target)

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

10,000

5,000

0

15,000

20,000

25,000

30,000

35,000

40,000(t-CO²/million yen)

(FY)

(t-CO²)

(t-CO²)

2005 2006 2007 2008 2009 2010 2011

Energy-Saving Results

*Red figures represent

totals for Japan and

overseas production

Japan (*Note 2)

SMK Group(*Note 1)

Overseas (*Note 3)

Japan(excluding amount due

to in-house production)

Overseas(excluding amount due

to in-house production)

Amount due toin-houseproduction

*Trends in actual CO² emissions show the trend for emissions excluding the increase due to the in-house production

*Actual production value is used in the calculation of emissions per unit of production value (*Note 1) Whole Group: Calculated by totaling Japan and overseas actual production value (*Note 2) Japan: Calculated with consideration of the Domestic Corporate Goods Price Index published by the Bank of Japan (*Note 3) Overseas: Calculated by conversion into yen amounts using 2005 (base year) exchange rates

CO2 emissionsts

*Red figures represent

totals for Japan and

overseas production

Japan

Japan

Overseas

SMK Group

Overseas

CO2 emissionsts

CO2 emissions perunit of production value

CO2 emissions perunit of production value

0.00

0.20

0.40

0.60

0.80

1.00

1.20

2005 2006 2007 2008 2009 2010 2011

21,18226,376

5,194

0.13

0.35

0.63

23,54028,372

4,831

0.11

0.35

0.60

28,48433,647

5,163

0.10

0.36

0.66

27,44731,415

3,967

0.10

0.42

0.77

27,47331,044

3,571

0.10

0.45

0.83

28,513

27,750

32,158

30,973

3,645 3,224

0.11 0.12

0.500.56

0.89

1.00

26,78029,375

2,595

0.10

0.50

0.82

(t-CO²/million yen)

21,18126,376

5,194

0.13

0.35

0.63

22,946

59527,777

4,831

0.11

0.34

0.61

26,603

1,881

31,766

5,163

0.10

0.33

0.64

24,729

2,729

28,685

3,956

0.09

0.35

0.65

24,509

3,046

27,998

3,490 3,528

0.08

0.34

0.63

24,21323,105

4,4174,729

27,74126,245

3,139

0.09 0.10

0.350.38

0.59

0.63

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6

Resource-saving Results

Industrial waste discharge per unit of production value was

almost the same as the previous year (101%), while the

amount of industrial waste discharge decreased by 13%.

The main reason for this is curbing waste by improvements of

manufacturing processes, as discussed in “Environmental

Preservation Activities” on page 4.

We project an increase in the amount of industrial waste

discharge in FY2012 as a result of increased production, and

we intend to push ahead with further efforts to realize

improvements.

As a result of these activities, SMK has also achieved a

significant reduction in our volume of landfill waste (74%

against the previous fiscal year), especially the quantity of glass

slag (a difficult material to recycle) from overseas operations

decreased. We will continue to make improvements in future,

looking towards becoming a zero emissions company.

Amount of industrial waste discharge

Overall industrial wastedischarge amount

Industrial waste discharge per unit of production value(nominal production value)

86%

72%

Japan

101%

87%

Landfill waste amount

Recycling amount 71%

96%

74%

Overall SMK Group

Year on Year

Amount of landfill waste and recycling rate

0.0000

0.0100

0.0200

0.0300

0.0400

0.0500

1,000

500

0

1,500

2,000

2,500

(t/million yen)

(FY)

(t)

*Nominal production value is used in the calculation of emissions per unit of production value

2005 2006 2007 2008 2009 2010 2012

(Estimate)

2011

70.0

75.0

80.0

85.0

90.0

95.0

100.0

100

50

0

150

200

250

300

(recycling: %)

(FY)

(t)

2005 2006 2007 2008 2009 2010 2012

(Target)

2011

*Red figures represent

totals for Japan and

overseas production

Japan

Japan

Overseas

SMK Group

Overseas

Amount of industrialwaste discharge

Industrial wastedischarge per unit of production value

*Red figures represent

totals for Japan and

overseas production

Amount of landfillwaste (Japan)

Japan

Amount of landfillwaste (overseas)

Overseas

Landfill waste amount

SMK Group

Recycling rate

210226

16

96.9

87.6

83.8

238238

1

89.3

99.9

86.2

129

0 0 0 0 0 0

129

100.0 100.096.0

95.0

100.0 100.0 100.0 100.0

94.1

92.7

7676

113113 125

92

125

92 92

92

95.2

91.9

93.494.4

91.292.9

94.7

93.5

1,2901,817

526

0.0128

0.0243

0.0384 1,726

2,229

503

0.0118

0.0272

0.0437 1,7652,193

429

0.0087

0.0237

0.04061,5071,913

406

0.0103

0.0256

0.0424

1,3961,887

492

0.0138

0.0275

0.0422

1,422

1,305

1,884

1,636

462331

0.01430.0120

0.0293 0.0296

0.0443

0.0470

1,4081,726

318

0.0123

0.0294

0.0429

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7

Environmental Accounting

(Units: million yen)

Environmental Preservation CostsOur environmental preservation costs in fiscal 2011

increased against the previous fiscal year, in terms of both

investments and expenses.

Investment costs increased due to the installation of equipment

to enable wastewater reuse as a measure to reduce the

environmental impact of one of our production works in

China.Expenses increased due to an increase in costs associated

with response to regulations concerning environmentally

hazardous substances, such as the revised EU-RoHS Directive.

Economic BenefitsEconomic benefits for fiscal 2011 declined against benefits

for the previous fiscal year.

The main reasons for this are that we produced less waste

able to be sold and a reduced amount of tools and equipment

was available for reuse, with a consequent reduction in the

economic benefit of reuse.

Environmental Preservation BenefitsWith regard to environmental preservation benefits, our

landfill waste amount declined, but we recorded increases in

the other three categories.

The reasons for CO2 and industrial waste-related increases

are explained in “Environmental Preservation Activities.” In the

case of environmentally hazardous substances, the increase

was due to our increased production of touch panels, which

involves numerous processes that use chemical substances.

Amount YoY Amount YoY Amount YoY

113%

YoY

Use of EnvironmentallyHazardous Substances:

11.7 t

CO² emissions per unit ofproduction value:

–0.06 t-CO² /million yen

Landfill waste amount:-32.7 t

Industrial waste discharge perunit of production value:

–0.0004 t /million yen

116%

100%

119%

109%

147%

103%

111%

110%

106%

22.8

42.6

27.3

92.7

1.1

172.9

50.0

7.4

0

324.1

1,360%

207%

ーー

311%

311%

19.2

29.5

0

48.7

0

0

0

0

0

48.7

0

9.7

95.6

105.3

0

0

0

0

0

105.3

277%

62%

67%

ー67%

Consumption/Output Savings

Investments ExpensesEconomic

Benefits AccruedEnvironmental Preservation Costs Environmental Preservation Benefits

(Quantity)

Pollutionprevention

Globalenvironmentalpreservation

Resourcecirculation

Sub-total

Upstream/downstream

Administration

R&D

Social activity

Environmentalremediation

Total

Category

Operation and maintenance of facilities used toprevent pollution

Efficient operation and maintenance of equipment, suchas air-conditioners, daily efforts to save energy, etc.

Appropriate processing and recyclingpromotion of industrial waste discharge

Green procurement

Elimination of environmentally hazardous substances / Environmental management education, activities forthe achievement of certification, etc.

Development of environmentally friendly products

Initiatives to expand green areas at works

Major Activities

Environmental Preservation Costs and Benefits

Main New Energy-saving Measures adopted in Summer 2011

●Adjustment of Lighting (Replacement of incandescent globes with LED globes, provision of LED desk lights to employees, introduction of presence sensors, reduction of number of globes)

28.1% reductionagainst peak use for

the previous summer

27.6% reduction incumulative power use

between June and September(Against cumulative power usebetween June and September

in the previous year)

●Changes to Group workplace attendance system (Partial introduction

of system of Saturday work, with Sunday and Monday as holidays)

●Timed start-up of air conditioners and limitation of output

●Upgrading of large servers, etc. to the latest compact models

●Restrictions on operation of vending machines…Etc.

In response to the electricity shortage over summer resulting from the effects of the Great East Japan Earthquake, the Japanese government applied

a power use limit of 15% below the figure for peak use for the previous summer to all large power users contracted for 500kW or more. SMK was not

subject to this restriction, but we set ourselves an even higher target than the government directive – a reduction of 25% against peak use for the

previous summer – and put a variety of power-saving measures into effect. As a result of our efforts, this target was achieved by all our sites that

purchase power from the Tokyo Electric Power Company, with a reduction of 28.1% against peak power use for the previous summer. In addition,

we reduced our cumulative power use between June and September by 27.6% against the same period last year, representing a 172 t reduction in

CO2 emissions. We intend to make use of the expertise gained from this initiative at other domestic and overseas workplaces, making changes to our

approach to enable us to use less power throughout the Group in future.

Accounting Procedure❶SMK’s environmental accounting practices adhere to the Environmental Accounting Guidelines 2005 published by Japanese Ministry of the Environment.❷Figures are based on data on capital investments and other expenses (including depreciation cost) required for the environmental preservation activities,

as well as data on the benefits accrued from them in terms of money and quantity, from all Japan and overseas sites of the SMK Group.❸Data for environmental preservation benefits indicated a decrease in amount compared with the previous fiscal year. A year-on-year comparison is not

presented for data without any reduction or comparable results with the previous fiscal year.❹Economic benefits accrued are clearly demonstrable and do not include speculative benefits.❺For environmentally hazardous substances in the category of environmental preservation benefits, aggregated subjects were the substances regulated

under the Law Concerning Reporting, etc. of Releases to the Environment of Specific Chemical Substances and Promoting Improvements in Their Management (Pollutant Release and Transfer Register, or PRTR Law).

Business area costs

Energy Conservation during Summer

Page 9: Becoming a Value-creating Company that

[ Factory Visit Events ]In fiscal 2011, we held two factory visit events for employees’

families.

Following a lively welcoming ceremony and a tour of the

factory, visitors were introduced to our environmental

improvement activities and offered brief lessons on climate

change and the recycling of resources. Participating children

greatly enjoyed the events, which allowed them to get to know

the place where their father or mother works in addition to

learning many new facts.

The development of our company and our ongoing

environmental preservation

activities are not the result of

our employees’ efforts in

isolation; the understanding

and support of their families is

also essential.

[ Introduction of Equipment for Reuse of Plating Wastewater ]The SMK Dongguan (China) introduced equipment using

reverse osmosis membranes to enable wastewater from

plating to be reused, and commenced test operation from

December 2011. This initiative required an investment of 1.26

million RMB, but will make it possible to reuse 18 m3 of the 30

m3 of water used per day in the company’s electroplating

facility, reducing water use by 4,500 m3 per year (10,305 RMB

per year).

The introduction of this equipment has enabled the company

to make a contribution to

the wastewater reuse

policy being advanced by

the Chinese government.

The company intends to

continue working in future

to realize environmπentally

friendly production

processes.

SMK Philippines has revised its system for the reuse of

wastewater from the touch panel production process.

Up to the present, only the wastewater from some glass

cleaning machines has been reused, being used as water for

toilets and fire hydrants and employed in the factory.

The company reexamined the types of glass cleaning

machines, in August 2011, from which wastewater could be

reused enabling approximately 35% of the water consumed in

the production process to be reused. The volume of water

saved by reuse will reduce the company’s water consumption

by 12,100 kℓ per year.

This is equivalent to the emissions from approximately 1,200

10-t trucks.

Efforts to reuse

resources and reduce

CO2 emissions will

continue in future, with

the company seeking

to realize a zero

emissions workplace.

Energy and Resource Saving Activities

8

The Toyama Works has introduced energy-saving

inverter-type spot air conditioners.

Up to the present, two large air conditioning units have

been used to cool the entire factory floor, but the company

has now eliminated waste by employing six spot air

conditioners in the areas in which they are needed.

The introduction of the new air conditioners will reduce

electricity use by 47,635 kWh per year (approximately 500,000

yen per year), A fuel oil use by 9,958 ℓ per year (approximately

650,000 yen), and CO2 emissions by 44.8t per year.

The company will continue to carefully analyze the present

status of operations

when upgrading

equipment, pushing

forward its activities

to enhance energy

conservation.

SMK Electronics (Malaysia) Sdn. Bhd. (SMK Malaysia)

SMK Malaysia fitted heat retention covers to the cylinders

of all 23 of its molding machines. The use of these covers

maintains the cylinders at a high temperature, increasing

thermal efficiency. This initiative has reduced power

consumption by 9%, and is expected to reduce CO2

emissions by 77.6 t per year.

In addition, the effect in controlling the radiation of heat

from the cylinders during operation prevents increases in the

temperature of the

workplace,

improving cooling

efficiency.

SMK Electronics (Phils.) Corporation (SMK Philippines) SMK Electronics (Shenzhen) Co., Ltd. (SMK Shenzhen)

SMK Shenzhen (China) has introduced equipment to

improve the power factor of the power sources supplying

electricity to its factory. A poor power factor results in

reactive power consumption, and this excess power

consumption has a negative impact on both electricity fees

and CO2 emissions.

The introduction of this equipment has increased the

power factor (COSφ) from 0.85 to 0.98, representing an

improvement of

approximately

25% in power

consumption,

and a reduc-

tion of 6.9 t per

year in CO2

emissions.

SMK Electronics (Dongguan) Co., Ltd. (SMK Dongguan)

to m

the

pol

the

T

con

to r

frie

pro

The company will continue to carefully

Inverter-type spot air conditioner

Equipment to increase power factor

Equipment for reuse of electroplating wastewater

The development of our com

Commemorative photograph of factory visit event

Molding machine cylinder with heat retention cover

tem

w

im

e

Molding machine cylinder with heat retention c

Water purification equipment

Etching process

Glass cleaningprocess

Recyclingequipment

Water forfire hydrants

Water for toilets/bathrooms

35% of water usedin industrial

processes is reused Reuse

Wastewatertreatment

Water for industrial use

Toyama Group Toyama Works, Hokuriku Sales Office,Toyama Showa Co., Ltd., Showa Denshi Co., Ltd.( )

Page 10: Becoming a Value-creating Company that

Creation of Environmentally Friendly Products

Micro USB Connectors (Spring Contact Terminal)

SMK has introduced an environmental management system based on ISO 14001, the international standard, at all of our Japan sites and overseas works. Throughout the entire cycle from material use to disposal of waste, SMK makes thorough reviews from the standpoint of environmental preservation and is promoting development and design premised on the 3Rs of Reduce, Reuse, and Recycle.

Micro USB connectors for use in smart phones, mobile telephones,

etc.

The spring terminals allow these to be pushed to the PWB without

using solders. The product design and the material selection take RoHS

Directive and halogen-free into account.

9

Connectors for LED Lighting: LT Series

Connectors for LED lighting, a type of illumination that offers an

energy-saving benefit. The lineup includes a total of five types of

connector, for base lights, line lights, and LED bulb. The connectors

conform to IEC standards and the stipulations of the Electrical

Appliances and Material Safety Law, and their design takes safety and

heat resistance into consideration by ensuring sufficient creepage

distance and air clearance.

FPC connectors for High-Speed Transmission: EN-31 Series

0.3-mm pitch FPC connectors compatible with products such as

digital home electronic equipment and IT devices in which signal

transmission speeds are increasing.

The connectors are compatible with the MIPI / D-PHY standard for

high-speed interfaces, and are ideally suited to realizing high-speed

transmission in mobile devices.The product design and the material

selection take RoHS Directive and halogen-free into account.

Connector for Photovoltaic Modules

These connectors link photovoltaic modules with cables. The original

multi-point contact structure assures and excellent contact performance.

The original water-tightness structure (top and bottom cover system)

facilitates cable waterproofing with easy operation without tools. The

connectors have UL and TÜV certifications. Available in a wide variety

of configurations, such as splitters.

Page 11: Becoming a Value-creating Company that

10

Dome Switch Series  

Switches that are widely used in

smart phones and other mobile

devices.

The use of “spring-contact”

terminals enables the switches to be

mounted without using solders,

making these environmentally friendly

products.

The switches are inserted in the

side of the set case, and the

connection is made by pressing the

terminal against the PWB.

With a full line-up available,

including miniature, double-dome

and mid-mount types, these

switches can be expected to find a

wide variety of applications in future.

(1)1-dome switch

(2)Mini 1-dome switch

(3)Double-dome switch

(4)Mid-mount mini 1-dome switch

AC Adapter

A 50W/20W-compatible AC adapter that conforms to international

safety and EMC regulations and features a unique quasi-resonant circuit

configuration for low-noise and low-loss operation.

In addition, a unique start-up circuit design ensures a stable power

supply when used with motor drives and other devices requiring high

current at start-up.

The adapter also conforms to energy efficiency regulations that have

come into effect in the U.S., Canada, Australia, the EU and other areas

as environmental preservation measures.

Touch Panels

We are proceeding with the development of touch panels selecting

transparent conductive films using carbon nano-tubes, organic

conductive polymers and other materials to replace indium tin oxide

(ITO). If it is possible to apply these films, we will be able to reduce the

quantity of ITO, which contains the rare metal indium, used in our

products. Because these substitute films display greater durability than

indium films, they will contribute to the miniaturization of products, for

example by enabling design that reduces the frame size.

Wireless Module

In addition to low power operation thanks to sophisticated power

management functions in this wireless module, the development of the

Bluetooth® serial-port adapter allows wired connections to become

wireless, reducing resource use.

(1)1-dome switch (2)Mini 1-dome switch

(3)Double-dome switch (4)Mid-mount mini 1-dome switch

Page 12: Becoming a Value-creating Company that

Published in June 2012

The paper used in this report is FSC mixed source certified, produced using wood from FSC

certified forests and managed forests. The report was printed using a vegetable ink derived

almost entirely from plant sources, and contains no volatile organic compounds (VOCs). It was

printed using the Minus Carbon Printing system, in which aluminum plates are reused.

h.22m

d.26cm

95.24kg is same as quantity of CO2 which a 6.83 cedar of 50 years old (h.=22m/d.=26cm) absorbs for one year.(source:forestry report 1997, Forestry Agency of Japan)

CorporationSMK printed this Environmental Report by reusing 6.24 kg of aluminum plates in the printingprocess, thus reducing CO² emissions by 89.54kg.

Non-VOC ink